VietNamNet Bridge – The total revenue of the Vietnamese household use porcelain market is estimated at 5.6 trillion dong. Meanwhile, domestic manufacturing workshops can hold just 30 percent of the market share.
A large and powerful army of porcelain makers
A report showed that by November 16, 2012, Vietnam had had 286 household use porcelain manufacturers who churn out products worth 1677 billion dong a year.
These include several different production sectors. Industrial manufacturers, or big enterprises which are possessing well-known brands such as Minh Long 1, Hai Duong Porcelain, Chuan Kuo Vietnam, each of the manufacturers of the group has one big scale factory with the average output of 1-2 million products a month.
Chuan Kuo, for example, churns out 2 million products a month. And if noting that the average price of the products is 9000 dong, the company has the total revenue of 18 billion dong a month, and 216 billion dong a year.
Minh Long 1 Company has the average capacity of one million products a month with the average sale price of 15,000 dong per product. As such, it can earn 15 billion dong a month and 180 billion dong a year, holding 3.2 percent of the household use porcelain market share.
Hai Duong Porcelain, the brand which has been well known in the north for the last 50 years, has the average yearly revenue of 84 billion dong, holding 1.5 percent of the market share.
Besides the industrial manufacturers, Vietnam also has a lot of porcelain production centers nationwide. One of the most famous ones is the Bat Trang craft village, which comprises of 50 production workshops which obtain the total revenue of 144 billion dong, holding 2.6 percent of the market share.
Thai Binh province, with 12 workshops, has the total revenue of 90 billion dong per annum, holding 1.7 percent of the market share.
Especially, the Binh Duong porcelain center has up to 160 workshops which churn out 684 billion dong worth of products every year.
Besides, the other 55 separated workshops in localities have the total revenue of 222 billion dong.
Trying to collect small pieces of the market cake
Nguyen Do Ha, General Director of the Hai Duong Porcelain Company, said that there have been too many obstacles that hinder the development of the traditional career.
Since most of the workshops still follow the craft production model, they need very skilful workers. The manufacturers also meet difficulties in the sales. Every year, the companies sit idle for six months and then work hard in the other six months.
Ha said that in 2011, some porcelain shops in Hai Duong province only worked from 10-11 am to 4-5 pm every day. Since early 2012, some areas specializing in trading porcelain products have been left idle because of no clients.
Though the Vietnamese porcelain industry has all favorable conditions to develop, its products can cover 30 percent of the 5600 billion dong domestic market only.
Living together with Chinese porcelain products
The other 70 percent of the market revenue has been falling into the hands of Chinese, who can offer products in large quantities with original designs and very low prices.
The low prices prove to be the biggest advantage of Chinese products. However, experts say Chinese products do not have high quality, the most important thing for any products.
Ly Ngoc Minh, General Director of Minh Long 1 Company, said Chinese products were fired at a low temperature of 800oC; therefore, they are not durable and can be broken easily.